Holonic Systems and Investment

Holonic systems treat money as one type of fuel that can be used to facilitate the evolution of complex systems. Consequently, the vantage for any optimization regarding holonic systems theory is how fuel can be better distributed to organizations that will lead to further evolution.

This might be a significant contrast to rational actor theory or any other forms of economics which emphasize the vantage point of any individual or actor. Holonic systems are perfectly capable of including any number of nested actors with their own sets of incentives and motivations without a primary or exclusive focus on any element.

Another implication of using the word “fuel” is that it implies movement. This implies the correct assessment that organisms must move in order to survive. It also implies, correctly, that many dynamics in evolutionary systems have a competitive aspect. More fuel often but not always leads to a competitive advantage.

That said, if fat on the body is the equivalent of stored fuel, it is equally true that these elements that can be considered “excessive” in that they may lead to the deterioration of health of the host or a lack of competitiveness.

Consequently, from the standpoint of an organism, the proper amount may be considered the amount that fuels the growth of more complex systems without leading to unhealthy or sluggish behavior.

The idea that there a “proper” amount and that it can be quantified leads holonic philosophy to differ significantly both from traditional investment theory, which generally is about quantitative maximization, or any of the economic theories which use an aggregate sense of “proper” (i.e. wealth distribution) without considering the needs and capabilities of the individual actor.

For example, from the standpoint of overall system efficiency, it might be highly desirable to have a few “supernodes” who are specialized in financing and, consequently, exist in a state of superwealth. Such a state could, arguably, lead to an overall optimal system efficiency.

In general, any large system will likely always have multiple corridors for investment and which are likely to always be in a state of potential optimization. It will take moving to a high degree of abstraction and examining the goals of the organization to see which types of investment are likely to lead to the overall goals of the organization.

WRITTEN BY

Joel Dietz

Joel Dietz is the Chief Scientist at Quantum Holonic Swarm Systems, a Palo Alto based research institute that works in the legacy of DARPA to fund and facilitate long term technology projects. They have funded and facilitated early experiments around blockchains, collective intelligence, biohacking, and virtual reality. He works especially closely in the evolving field of organizational design and advises his corporate clients on how they can leverage these exponential technologies.